Can low-income earners buy houses from the 30,000 billion VND real estate bailout package?
To have an accurate opinion on this issue, we calculate specifically. Housing sold to low-income people is housing priced under 15 million VND/m2, specifically, there are houses currently being sold for 12 million VND/m2. Thus, a smallest apartment of 50m2 costs 600 million VND. Let's calculate, how much income from salary per month can a person have to buy this apartment?
(Baonghean) -To have an accurate opinion on this issue, we calculate specifically. Housing sold to low-income people is housing priced under 15 million VND/m2, specifically, there are houses currently being sold for 12 million VND/m2. Thus, a smallest apartment of 50m2 costs 600 million VND. Let's calculate, how much income from salary per month can a person have to buy this apartment?
The 30,000 billion VND bailout package is a package of money that banks will lend to home buyers for 10 years at an interest rate of 6%/year. According to regulations, home buyers must have 20% capital, which is 120 million VND, and can only borrow 80%, which is 480 million VND. To pay 480 million VND in 10 years, the buyer must pay 4 million VND in principal per month. With an interest rate of 6%/year, the borrower must pay the bank 29 million VND in interest each year, or 2.4 million VND per month.
So, in order for the borrower to not owe the bank after 10 years, each month the borrower must pay the principal of 4 million VND plus interest of 2.4 million VND, which is 6.4 million VND. A family that wants to buy a small house of 50 m2, in addition to spending on food, education, etc., must have about 6.4 million VND left over each month to pay off the bank loan. If we count the family's living expenses, the family must have at least an income of about 15 million VND/month. We can see that a family (2 spouses, 2 children) with that income is not much. Therefore, people with low incomes (under 15 million VND/month) find it difficult to dream of buying a house.
Mr. Nguyen Tran Nam - Deputy Minister of Construction honestly said: "Even a minister of his caliber, based on his salary, would need 40 years to buy a house!"
So what to do? In three ways, increase wages for workers, lower housing prices even further, extend the time and lower bank lending rates? If we want to improve the lives of workers and help them buy houses, the best thing is for the Government to propose to the National Assembly to implement all three solutions at the same time. In reality, what is the current situation?
Regarding salary increases, at least by July, the National Assembly's resolution must be implemented. Although our country's economy is in a very difficult time, and budget revenue is limited, according to National Assembly Chairman Nguyen Sinh Hung, "if we can't increase much, we have to increase a little, we can't not increase at all". Thus, if there is a salary increase in the near future, perhaps the additional salary will only be enough to compensate for price increases, and it will be difficult to improve the lives of salary earners, let alone save up to buy a house!
Regarding the reduction of housing prices for low-income people: Mr. Nguyen Tran Nam - Deputy Minister of Construction said that the Ministry is calculating to bring the price of low-income housing down to below 12 million VND/m2. On May 28, the Housing and Urban Development Corporation (HUD) started construction of thousands of social housing units. The selling price could be below 10 million VND/m2. The Hanoi Department of Construction said that the Department is implementing 14 housing projects for low-income people, with a total area of 12.9 hectares, a total floor area of 1.24 million m2 with 15,412 apartments, the selling price is also below 10 million VND/m2. Thus, we can see that the "supply" can be quite abundant. However, even though housing prices have dropped below 10 million VND/m2, with the current salary, wage earners still cannot afford to buy a house.
Currently, the salary of workers is very low, the price to buy an apartment is too high, so the ability to buy a house for wage earners is still unimaginable. According to statistics, the difference between housing prices and wages of workers is that in Vietnam, housing prices are 25 times higher, while in Europe it is only 7 times, in Thailand 6.3 times, in Singapore 5.2 times... With such comparative figures, we see that solving the housing problem for wage earners in Vietnam is much more difficult than in other countries! Hopefully, the Government and the National Assembly will have more appropriate measures to solve the problem of the huge difference in wages and housing of our country's workers as soon as possible...
Litmus
